Are you considering applying for a Best Egg Personal Loan and wondering how it could affect your credit? If so, you’ve come to the right place. Learn how credit inquiries and personal loans may affect your credit score, both when you apply and over time.
Applying for the Best Egg Personal Loan
When you complete an application for a Best Egg Personal Loan, a soft credit inquiry (also known as a soft credit pull) will appear on your credit report. If you’re approved, you can review the APRs, interest rates, loan terms, and loan amounts before deciding whether to accept an offer. Checking your rate uses a soft inquiry, which does not impact your credit score.
When you choose to accept your Best Egg Personal Loan offer, a hard credit inquiry (or hard credit pull) will be generated on your credit report. This hard inquiry may likely result in a temporary impact to your credit score. This only happens if you’re presented with loan offers and decide to accept one. However, with regular on-time payments and responsible credit use, your score may recover in a few months.
How can a personal loan affect your credit score?
When managed responsibly, a Best Egg Personal Loan may have a positive impact on some of the factors that contribute to your credit score. Here are a couple of examples.
Positive payment history
A hard credit pull may impact your score, but consistent, on-time loan payments may help build a positive payment history.
Payment history is the number 1 factor in your credit score, making up 35% of your FICO® Score. Late or missed payments can negatively affect your credit. Making your Best Egg Personal Loan payments on time can help you establish a positive payment history, which may have a positive impact on your credit score over time.
Could improve your credit mix
Having different types of credit on your credit report contributes to your credit mix. Credit mix accounts for 10% of your FICO® Score.
If most of your existing credit is revolving credit, such as credit cards, adding an installment loan like a Best Egg Personal Loan could diversify your credit mix. This may also have a positive impact on your credit score.
Learn what goes into a credit score to help you make informed credit decisions.
See what you qualify for
Looking for funds to consolidate debt, refinance credit cards, pay for unexpected expenses, or cover another financial need? You can check your rate on our personal loans page with no impact to your credit score. If you want to estimate your Annual Percentage Rate before you apply, check out our Best Egg Personal Loan Calculator.
This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.
